Poway Council creates housing authority, looks at midyear budget

The Poway City Council meeting tonight included a decision to form a housing authority, a midyear budget report and a State of the City address from Mayor Don Higginson.

HOUSING AUTHORITY

The formation of a housing authority was approved 4-0. It was a move to keep control of affordable housing and other property owned by the city's Redevelopment Agency. Councilwoman Merrilee Boyack was absent.

It comes two weeks after the sudden resignation of Redevelopment Services Director Dena Fuentes and in the face of a proposal by Gov. Jerry Brown to use uncommitted funds from redevelopment agencies to patch part of the state budget deficit. That move would spell the end of redevelopment agencies, which help fund and oversee development of worn down parts of town, and could transfer control of redevelopment projects, such as affordable housing, to the County Housing Authority.

The City Council will be the Housing Authority’s commissioners.

The city has put $37 million into nine affordable housing projects. The Redevelopment Agency owns the land, giving the city the power to set standards for maintenance and management. It also owes the city several million dollars. The housing authority may help ensure that those loans are repaid.

A staff report says law requires certain conditions to warrant the formation of a housing authority. It must be necessary due to unsafe or unsanitary homes or there must be a shortage of safe and sanitary homes that low-income earners can afford.

Poway officials believe they meet the standards.

Councilman Jim Cunningham noted that the maneuver is not guaranteed to keep the Redevelopment Agency’s assets out of the State’s hands.

Midyear revenues are higher than projected, said Administrative Services Director John French.

Revenue from sales tax is estimated to be at $9.8 million, 5 percent higher than anticipated. Property tax revenue is about $8.1 million, 4 percent higher than projected. General fund revenue is up 3 percent while expenditures are down 3 percent, estimates show.

French said the city got an unexpected bill from the San Diego Metropolitan Wastewater Joint Powers Authority for $229,000. He said the impact of that cost will be partially offset by reducing other contract costs.

Mayor Higginson said the city will focus on Community Park this year, which may include a design for the Michael P. Cafagna Community Center, named after the late mayor.

Another priority, Higginson said, will be working with the business community to spur economic development. The city recently held a business summit and is polling the business community with a survey to see how it can help.

He also praised and recognized by name several of the city’s volunteers for their civic contributions.

The speech included a brief mention of the two elections, including the June recall election in which former Councilwoman Betty Rexford was removed from the dais by 78 percent of voters.

Higginson will give another State of the City address to be held at 7:30 a.m. Thursday at Maderas Golf Club, 17750 Old Coach Road. Those who wish to attend can register here.

The meeting was concluded with some sports banter, as Higginson, a BYU alumnus, gave Cunningham, an SDSU fan, a BYU hat in light of the basketball game Saturday in which BYU topped SDSU. Look for full stories on these topics – minus the sports repartee – later this week.